Weimar Company€™s income statement information follows.

The average number of shares outstanding was 7,800 for 2011 and 6,900 for 2010.
Required
Compute the following ratios for Weimar for 2011 and 2010.
a. Number of times interest was earned.
b. Earnings per share based on the average number of shares outstanding.
c. Price-earnings ratio (market prices: 2011, $64 per share; 2010, $78 per share).
d. Return on average equity.
e. Net margin.

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2011 2010 $260,000 85,000 63,000 8,000 235,000 230,000 Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (2009: $200,000) Common stock, par $50, December 31 $420,000 55,500 9,000 305,000 206,000